JIM CHALMERS:
We're here to talk about the new inflation data that we got this morning. But before I do that, I wanted to say this: our hearts go out to the loved ones of the worker who was badly injured on the Cross River Rail site in the last 24 hours or so. We don't want to see anybody injured at work. Every worker deserves to come home safely at the end of the day. I understand Workplace Health and Safety Queensland have launched a thorough investigation to get to the bottom of what happened here - that's appropriate. But we do want the family, the co‑workers and the loved ones of the worker who was injured at the Cross River Rail site to know our hearts go out to him and we wish him a speedy recovery from what appear to be very substantial injuries.
New inflation data was released today by the ABS. We understand that Australians are under the pump and inflation remains the primary challenge in our economy, and that means it remains the primary focus of the Albanese government and our economic plan. It's really pleasing to see that inflation in our economy is moderating further, we'd like to see it moderate faster but we are making welcome progress in this fight against inflation. The Consumer Price Index increased six per cent through the year to the June quarter, 5.4 per cent through to the month of June itself. In quarterly terms, it's down from the peak of 7.8 per cent over the year to the December quarter last year. Inflation increased 0.8 per cent over the quarter. Now, this is less than half of the quarterly peak in inflation, which was 2.1 per cent for the March quarter 2022, before the last federal election. So we've got inflation moderating in annual terms. And when you compare the quarterly peak ‑ March last year - we've gone from 2.1 per cent before the change of government to 0.8 per cent in the new numbers that are released today.
Even with today's numbers showing a welcome fall in inflation, a welcome easing in inflation, we know that people are still doing it tough. We know that Australians are still under the pump as they confront this inflation which is moderating in welcome ways, but which still will be higher than we'd like for longer than we'd like. Inflation remains our number one challenge and it remains the Albanese government's primary focus of our economic plan. And in this environment, it's really important that we do three things and we are doing these three things: firstly, banking a bigger surplus to take some of the pressure of inflation. Secondly, providing cost‑of‑living help that takes the edge off some of these pressures, rather than adding to inflation. And thirdly, focusing on and investing in the supply side challenges in our economy as well. That is our three point plan for combating this inflation challenge, and we are pleased to see that inflation is moderating as a consequence of our collective efforts. Whether it's getting the budget in much better nick, providing cost‑of‑living help without adding to inflation, or investing in the supply side of our economy - these are the three most important things you can do in the context of high inflation and these are the three things that we are doing, and we're pleased to see inflation moderating as a consequence.
Our cost‑of‑living support, and rolling that out over the course of the next couple of months is really the most important thing that we're doing as a government. Our primary focus is to roll out this cost‑of‑living help so that we can get it into the pockets of families and small businesses to help them deal with this inflation, which is moderating in welcome ways but which we would like to see moderate even faster. We've got Commonwealth Rent Assistance going up in September - the biggest increase in 30 years. We've got increases in other payments in September. We're rolling out electricity bill help with the support of the states to five million households and a million small businesses. We're making medicines even cheaper for people from the first of September. And what we're trying to do here is to recognise that some parts of these cost‑of‑living pressures are more acute than others. So part of our targeting, in addition to the people who need it most, is also the areas which are most problematic.
We see in these numbers when it comes to rent, for example, just how important it is that the central part of our cost‑of‑living relief and a central part of our economic plan is providing that Commonwealth Rent Assistance increase at the same time as we try and invest in supply. It's a shortage of affordable rental properties which is pushing up rents in our economy. We're providing help with rent assistance at the same time as we're trying to build more affordable homes. And an important part of that is getting the Senate to pass our Housing Australia Future Fund, at the same time as we're rolling out billions of dollars in support for new affordable housing in this country. And so these cost‑of‑living policies are directly reducing price pressures in our economy. Treasury estimates something like a three quarters of a percentage point improvement this financial year as a consequence of our cost‑of‑living help. The Reserve Bank Governor has said that our budget is taking the pressure off inflation rather than adding to these inflationary pressures. The first surplus in 15 years is also helping take the pressure off inflation when that pressure is at its most acute. And because of our responsible economic management, we have shown that a bigger surplus in the year that has just finished needn't come at the expense of providing this cost‑of‑living help. We found a way to get the budget in much better nick, at the same time as we're rolling out this assistance for the people that need it the most, in the areas where the pressures are most acute.
There is still a long way to go to head off this inflation challenge but today's numbers do show that we're heading in the right direction. We're seeing inflation moderate from its peak - its quarterly peak before the last election, its through the year peak towards Christmas of last year. We're seeing it moderate and we'd like it to moderate quicker but our economic plan is playing a really important role here in the moderation of inflation. We are rolling out this cost‑of‑living help, we're getting the budget into better nick, we're investing in the supply side of the economy - all of the ways that the textbook would say you deal with this inflationary environment in which we found ourselves, and that we inherited from our predecessors. Happy to take any questions if anyone has any. Okay, I'm asked by the gallery to cover off a couple of other issues.
Firstly, when it comes to the data breach from the ATO, the safety of people's information is incredibly important to the government. Stealing someone's identity to illegally claim a false, fake tax refund is unconscionable. This is a real concern to the government. The people who are doing this are absolute grubs. We have asked the ATO to crack down on this activity. The ATO is ramping up its response: they're requiring higher levels of proof, they're putting in place smarter tech to identify these criminals, and they're contacting taxpayers directly when an account is accessed in a new way. But there will always be more to do. We need to be vigilant as a government and also as individuals. Katy Gallagher has said some important things in the last day or so about a national digital ID framework, and that's one of the ways that we seek to protect people's identity. We also need people to be really vigilant when it comes to scams and fraud of this nature. I remind people do not click the blue links when you get a text message. If you get an unsolicited call, hang up and call back on the publicly available number to make sure that you're talking to who you think you're talking to. And if you think you have been scammed, immediately contact your bank and the tax office as soon as you are aware that you have been scammed. It's really important that you make that call straightaway. So we need vigilance. Don't click on the links that you get in unsolicited ways. Don't provide information to people who cold call you. And if you had been scammed, make sure you report it immediately to the relevant authorities.
I'm asked about the Productivity Commission and Closing the Gap. The government is carefully considering the recommendations in the draft report from the PC. We know that there's a lot of work to be done to meet all four priority reforms of the national agreement. And this report shows once again that the status quo is not working as we need it to. This report underscores why it is so crucially important that we get a Voice to Parliament, which is about recognition, it's about listening, but it's also about giving ourselves a much better chance of closing the gap and making a tangible difference to the lives of First Nations people in communities right around Australia.
Now the last thing I'm asked about is comments from the Opposition when it comes to this inflation challenge in our economy. I remind Angus Taylor and Peter Dutton and Jane Hume that the peak in inflation in quarterly terms was 2.1 per cent in the March quarter of 2022 before government changed hands, The highest quarterly inflation that we've seen for some time in our economy was the March quarter last year before the election - 2.1 per cent in the March quarter then, 0.8 per cent in the quarter that we're hearing about today. Now when it comes to Liberals and Nationals, when it comes to spending in particular, the Opposition is hopelessly split when it comes to what to do about this inflation challenge. Peter Dutton says we should be providing more cost‑of‑living assistance, Angus Taylor says we should be spending less in the budget, and Jane Hume says that we've got it absolutely right. This Opposition has got three different spokespeople and three completely different views. This is one of the reasons why there hasn't been a less credible or less coherent opposition when it comes to the economy in living memory then these characters who want to have a bob each way when it comes to the economy. Peter Dutton says spend more, Angus Taylor says spend less, Jane Hume - to her great credit - has welcomed the government's approach to the budget because it is working.
If they want to make a meaningful contribution to this discussion about spending and about inflation, they should tell us how much their policies cost. It has been more than 10 weeks now, almost 11 weeks, since Peter Dutton's Budget reply and he still can't tell us how much the main policy in that Budget reply actually costs. And we keep being told it's not far away. They still haven't been able to tell us almost 11 weeks since the Budget reply how much that policy costs. There has not been a less coherent, less credible opposition on the economy in living memory. They are hopelessly split when it comes to spending and inflation. They've got a much higher quarterly peak when it comes to inflation on their watch then on ours, they should come clean on how much their policies cost and they should tell us what their view is. They should come to an agreed position: spend less or spend more, or the government's got it right. As it stands right now, they're hopelessly split from top to bottom. Thanks very much.